PepsiCo (PEP) 10-Q 2008 Q2 Quarterly report

EXHIBIT 12

PEPSICO, INC. AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(in millions except ratio amounts, unaudited)

	24 Weeks Ended
	6/14/08			6/16/07
Earnings:
Income before income taxes	$	3,883		$	3,590
Unconsolidated affiliates interests, net		(150	)		(158	)
Amortization of capitalized interest		2			4
Interest expense(a)		132			96
Interest portion of rent expense(b)		49			47
Earnings available for fixed charges	$	3,916		$	3,579
Fixed Charges:
Interest expense(a)	$	132		$	96
Capitalized interest		7			9
Interest portion of rent expense(b)		49			47
Total fixed charges	$	188		$	152
Ratio of Earnings to Fixed Charges(c)		20.84			23.51

^(a) Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes.

^(b) One-third of net rent expense is the portion deemed representative of the interest factor.

^(c) Based on unrounded amounts.